PM's visit to Australia a boon to Thailand: HSBC
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Prime Minister Yingluck Shinawatra's first official visit to Australia during May 26 to 29 will further strengthen bilateral trade and investment in the two countries, according to HSBC economists in the two countries.
Trade is a key element in the future ties between these two nations and presents a major opportunity for international businesses in the two markets. Thailand’s exports to Australia are set to increase 10 per cent annually over the next 5 years whilst its imports are expected to increase by 8 per cent annually, according to HSBC’s Global Connections trade forecast.
HSBC’s Global Connections forecast sees Thailand emerging as Australia’s fastest growing export partner, after China, over the next five years. The increase in Thai exports to Australia will be driven by demand for gold, cars and road haulage which are set to grow 14 per cent, 9 per cent and 9 per cent to 2016, respectively. Imports from Australia into Thailand will be driven by petroleum oil and powdered gold for manufacturing which are set to increase by 12 per cent and 10 per cent over the next five years, respectively.
“‘We are seeing increased interest from Australian businesses in Thailand as a leading centre for manufacturing within the region. On the flip side, businesses in Thailand are investing in Australia to tap into its natural resources that, in turn, drives our country’s manufacturing sector. The two economies complement each other extremely well. We are regularly connecting customers to opportunities between the two markets as global trade grows," said Kanoksak Mokkamakkul, head of Commercial Banking, HSBC Thailand.
During her visit, Yingluck will meet with Julia Gillard, Prime Minister of Australia, as well as meet with concerned ministers to follow-up on the development of Thai-Australian relations and to discuss cooperation in regional and international frameworks, particularly in ASEAN and East Asia Summit (EAS) as well as meet with the Australian private sector to build networking and encourage collaboration between Thai and Australian businesses.
Australia was Thailand’s 9th largest trading partner in 2011, representing a total trade value of US$15.28 billion or Bt483.07 billion, or 3.5 per cent of Thailand’s total trade value . Trade value between the two countries has expanded three-fold, since the implementation of the Thailand-Australia Free Trade Agreement (TAFTA) in 2005 and continues to be a key market for Thai investors.
"While already Australia's seventh largest trade partner, Thailand’s continued urbanisation of its population presents significant opportunities for Australia’s commodities and infrastructure expertise. Thailand's plans for rapid infrastructure development and reduced barriers to Australian foreign direct investment are positive signs for Australian mining operations and construction services wanting to capitalise on this growing Asian economy," said James Hogan, head of Commercial Banking, HSBC Australia.
